During studies to identify small molecules that stimulate bone formation, we developed a screening assay based on the capacity of compounds to stimulate expression of the growth factor, bone morphogenetic protein-2 (BMP-2). We found by serendipity that one of the compounds we identified, a small 4 amino acid peptide, dramatically increased hair follicle number, root sheath diameter and hair growth in mice. These effects were found when the compound was either injected into the subcutaneous tissue or applied topically. A therapy that stimulates generation of hair follicles would be a major boon not just to those patients affected by the cosmetic problem of male pattern baldness and hair loss which is common in the elderly, but also those patients who suffer alopecia as a consequence of cancer chemotherapy. Current therapies which are used do not cause generation of new hair follicles, and are ineffective for frontal balding. In order to determine efficacy of this compound in humans, we would now like to complete studies required for a successful physician-sponsored IND application, including pre-clinical toxicology and development of analytical methods and assays in this Phase I application. PROPOSED COMMERCIAL APPLICATIONS: We have identified a small molecule which causes hair growth when administered topically to animals. We now would like to complete data which would be required for a successful physician-sponsored IND application.